QUESTION ONE XYZ divisions, one in Nairobi. Division 1 and Division II. The following data in respect of division has been provided. Limited is a private company located in Nairobi, Kenya. The company has two Division The following data for this division for the most recent period is as follows ITEM Sh' millions Revenues Earning before interest and Tax Book valuc of debt Book value of equity Working capital investment Non-cash charges Fixed capital investment 20 1.5 0.5 Tax rate 30% Additional information The division had a pre-tax interest of Sh. 100.000. There are ten publicly listed companies in the same business as this division and their average beta is 1.45. The average debt-equity ratio, based on book value of both debt and equity is 0.3. The estimated average return on the NSE-20 share index is 12 percent and annual average return on Treasury Bonds is five per cent